I think it is a wonderful idea.

Even though past Champions may not be unable to compete with the younger guys, their fans enjoy seeing them out on the course. The men earned their life-time exemptions and they should be afforded the opportunity to have their "day". It also exposes the younger generation to men that made golf the sport it is today. I believe one of the reasons the Champions Tour is popular is the fact that people enjoy seeing the older players out on the course.
(I look forward to the day that I will be embarrassed by a 106 or 85

)